Amazon and the political/legal environment

What is the political/legal environment

Political
 The political and legal dimensions of the external environment include regulatory
parameters within which an organisation must operate. Political parties create or
influence laws, and business owners must abide by these laws.
 Political factors encompass labour legislation, corruption, international trade policy,
and tax rules and regulations.
 Amazon is reliant on governmental support for implementation, distribution, and profit
that is vital for the success and growing popularity of its organisation.
 The growing popularity of the online retail business is a result of governmental
encouragement. However, this growing industry of online retailing can also prove to
be a risk for Amazon facing tough competition from big brands, especially foreign
companies making their way into online retail
 Especially China with its businesses moving to the forefront, emerging to bring their
services to a wider audience and facilitating their growth worldwide

Legal
 Legal factors include changes to legislation impacting employment, access to
materials, resources, imports/exports, and taxation.
 The continuous rise of product regulation has been prompted by the societal
demands on consumer safety and thus, Amazon must prioritise cybersecurity to
evade any breaches to customer information
 Amazon has publicised to abiding by the U.S. federal privacy legislation, which
postulates transparency about data practices, prohibits the sale of personal data
without consent, and ensures that consumers have the right to request access to and
delete their personal information
 Whilst focusing their attention to consumer protection, Amazon also directs its efforts
to the global market to import and export policies
 Changes to import and export regulations allows for Amazon to have a comparative
advantage against competitors to broaden its global operations to exploit the
increasing ability of sellers to access foreign suppliers)
 In 2019, Bob Ambrogi announced Amazon’s imitative to launch an IP Accelerator to
provide trademark registration service at an adjourned cost through a carefully
selected network of IP law firms
o Cohen states that the IP Accelerator aids companies to quickly attain
intellectual property (IP) rights and brand security in Amazon’s stores.
o It focuses on smaller businesses to protect their ideas from other sellers in an
easier and more cost-effective approach. 

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Political
 Political stability enables managers in developed countries to expand or diversify
their operations. Governments have implemented a variety of measures to combat
cybercrime, albeit the scope of these measures and the degree to which they are
effective vary from nation to nation.
 Amazon benefits from increased consumer confidence in online transactions results
from government efforts to improve cybersecurity. Their strategy to openly operate
with other countries whilst abiding by their policies leads to the success and growth
of the company. 
Legal
 Amazon’s consistency with following laws in different countries and adhering to
labour laws is highly successful and constant, however, poses threats for the
company.
 Heavy fines could be imposed for breaking regulations and can lead to consequential
loss of money in damages and penalties.
 Amazon has strategically observed the laws and regulations habitually and deliver
signed declarations and documentation to clarify policies relating the growth of its
brands.